Expert Zone

Straight from the Specialists

FII friends are back; hope it’s not just a rave party

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The markets have extended previous week’s gains with Nifty surpassing an important level of 5500 and has accelerated further, mainly led by strong FII inflows and short covering.

Global indices rallied after the Greece parliament approved harsh austerity measures, which could pave the way for the debt-laden European nation secure emergency international financial aid and avoid a debt default.

Overall, June was quite volatile where one witnessed both the extreme ends of the range getting tested and finally closing at the top-end of the band. Strong rollovers were seen in Nifty from June to July series as almost 57 pct positions got rolled in next month as compared to 52 pct positions last month.

Marketwise rollovers were in line with expectations and almost 84 pct positions got rolled in July as compared to 83 pct last month. Strong rollovers were seen in banking, cement, FMCG, pharma and power sector as compared to last month.

Awaiting Nifty settlement above 5500

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

It was a volatile week for the markets which saw the Nifty slipping to as low as 5186 before ending up 2 pct. The coming week is also expected to be volatile as derivative contracts are due for expiry on Thursday.

No domestic cues; look for Fed meeting

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The Nifty is close to critical levels ending 2.2 pct down after holding at higher levels for a long time. Interestingly, mid-caps and small-caps are quietly outperforming the benchmark indices which clearly suggest that a few large-cap stocks like Reliance Industries are pulling it down.

Where is the Indian stock market heading?

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The BSE Sensex has left us guessing about where it is headed. It’s not an easy task considering it had touched 20,509 in Jan 2010 and peaked at 21,207 in Jan 2008.

Time to look for some contra bets

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

Indices were able to show some respite after a dismal performance in the last five weeks. However, foreign investors failed to push the Nifty beyond its well established 5600 levels. The increased option activity at 5600 and 5400 also confirms a trading range with a downward bias.

Value buying to emerge in key large caps

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Selling pressure continued over fresh concerns of Europe’s sovereign debt crisis with derivative contract expiry providing the volatility. The market-wise rollovers were almost 83.2 percent as compared to 82.8 percent last month.

On the sectoral front, most of the rollovers were seen on the short side. Select long rolls were seen in pharma, OMCs and FMCG sector whereas sectors like infrastructure, banking, capital goods and technology saw short positions getting rolled in the month of June.

SBI-led weakness to continue, monsoon next trigger

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

It was yet another disappointing week for the markets as key indices corrected by about 1 pct as resumption of selling by foreign funds and a marginal rise in crude oil prices weighed on sentiment but the support levels of Nifty 5400 were not violated.

Markets Weekahead: Range-bound with positive bias; metal stocks to correct

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

It was a topsy-turvy week for the markets with key indices plunging below respective psychological barriers yet again only to recover on Friday on frenzy buying.

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